Business Day (Johannesburg)

South Africa: Trade Commission Struggles to Find Feet as It Loses Court Battle

Johannesburg — THE International Trade Administration Commission (Itac) has suffered another blow in court, losing an appeal against it by Scaw Metals, which challenged a decision to have antidumping duties terminated on fishing and mining rope.

Itac is a key state institution tasked with ensuring fair trade between SA and its international trading partners. Its work is on par with that of the Competition Commission - only at international level. But where the competition body has stacked up some high-profile successes to ensure fair competition in the local market, Itac has floundered.

Moreover, a National Economic Development and Labour Council framework document on SA's response to the global economic crisis called on antidumping investigations to be stepped up by Itac to protect local manufacturers. But Itac's poor track record in court has raised questions about the commission's ability effectively to administer the crucial remedy element of trade policy.

The relief was sought by Scaw Metals, which manufactures rope in SA and which originally brought the dumping complaint against UK-based Bridon International, which exports fishing and mining rope to SA.

An interdict had already been granted against Itac by the North Gauteng High Court in Pretoria, preventing the commission from forwarding a recommendation to the trade and industry minister to terminate the antidumping duties.

Itac opted to appeal the decision but Judge Eberhard Bertelsmann last week again found against the trade body, and dismissed its actions in the case as "irrational and unreasonable" and "a misdirection".

In his finding, Bertelsmann said Scaw, like all other producers in the Southern African Customs Union , was entitled to administrative action that was "fair, reasonable, rational and procedurally fair".

The ruling echoes other findings, which have lambasted shoddy investigative procedures and flawed findings on the part of Itac.

Bertelsmann also shot down a suggestion in Itac's submission that Scaw would have alternative recourse to remedial measures, because the company could bring a dumping complaint afresh, saying these remedies could be obtained only "after the proverbial horse has bolted", and after costly and time-consuming procedures, the outcome of which "would be hotly contested".

Itac has lost at least six cases in the past 18 months, with several more pending against it, and the interdict is the latest in a string of court challenges over what trade lawyers say were poor trade remedy decisions.


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